YOU And YOUR MONEY®http://money.ca/you_and_your_money
Canadian financial writers on personal finance.Thu, 21 Feb 2019 18:09:06 +0000en-UShourly1https://wordpress.org/?v=4.9.9394083325 Things That Can Reduce Monthly Social Security Disability Paymentshttp://money.ca/you_and_your_money/2019/02/21/5-things-that-can-reduce-monthly-social-security-disability-payments/
Thu, 21 Feb 2019 18:09:06 +0000http://money.ca/you_and_your_money/?p=8433Social security benefits are immensely helpful for numerous individuals throughout America who need a little extra support in reaching a livable pay and meeting acceptable living standards. Still, some surprising life events can lower the total amount of benefits that some people might qualify for.

Income increases, changes in living situations, and receipt of government pensions can impact an individual’s eligibility for Social Security Income and/or Social Security benefits.

Read on to find out which things could reduce social security benefits.

Getting a Job or an Increase of Another Source of Income

Usually, people receive fewer social security benefits when they get a job or go back to work. This is most common after retirement. If individuals receive a major income increase they sometimes no longer need social security benefits.

Going back to work can make someone ineligible for social security disability benefits and it can also impact social security income (it can be ended or reduced). Substantial gainful activity refers to when individuals are making more than $1,090 per month and can cause benefits to stop or be reduced.

Medically Ineligible

The SSA requires that periodic reviews take place to assess any change in the recipient’s disability condition. If the person is still deemed unable to work, they will still be considered disabled and will receive benefits. If a doctor verifies that a person’s condition has improved to the point where they can work again, they are no longer eligible for benefits.

Housing Arrangements

Supplemental security income rates also depend on living arrangements. If a person has help with their living situation from family, friends, or other organizations, they will qualify for a lower supplemental security monthly payment.

The Social Security Administration views this help as unearned income. They reduce the benefit amounts for shelter and food since the recipient is not paying for these. This typically only applies to shelter and food. It won’t impact other gifts such as furniture, appliances, or other types of necessities that the person might receive.

Insurance Offsets

Social security offset exists when a social security disability claim is filed on long-term care, health, life, and disability policies, the total benefits paid out can be lowered. It’s also possible to have double offsets taken if people have more than one LTD policy. Double offsets result in lower disability income.

Pensions From Government Work

The Social Security Administration can even lower payments by including income that someone earned through local, state, or federal government work, as long as they paid social security taxes on it. In the case of pension lump sums that are paid annually, these are divided by twelve months and deducted from monthly benefits.

Certain exceptions exist, though. Federal employees who are a part of the retirement system will not experience a reduction in benefits. Current federal employees with a monthly pension for a position that they contribute to social security taxes with won’t have their monthly payments reduced as long as they filed for or were eligible for spouse benefits prior to April 1, 2004. Government workers who have paid social security taxes over the course of the last 60 months of service will not have their monthly payments reduced.

It’s important to know how various life events can affect payments because they affect many people. Breaking down the knowledge barrier can help people understand which benefits they have access to, and which things might be a hindrance to receiving social security disability payments. The Social Security Administration will always notify those who have a change in their monthly benefit eligibility.

]]>8433Advice to Young Startups Looking to Make an Impacthttp://money.ca/you_and_your_money/2019/02/20/advice-to-young-startups-looking-to-make-an-impact/
Wed, 20 Feb 2019 15:28:27 +0000http://money.ca/you_and_your_money/?p=8429When you’re thinking about diving headfirst into the entrepreneurial trenches, any piece of advice you can get from those who came before you is invaluable.

To get you started on the right foot in your startup journey, I’d like to share some of the lessons I learned along the way during my tenure in the venture capital industry.

First, remember that starting a company requires both time (lots and lots of long hours) and personal sacrifice. That’s why it’s important to make sure your business idea is something you believe will transform the market or directly impact a major void in a market. . Make it meaningful and something that will create significant interest from consumers.

A second guidance point, and this is probably the most critical: surround yourself with individuals and team members who are smarter than you and passionate about being part of a start-up. You need to build a diverse team of people who have a variety of backgrounds and perspectives and who can give you helpful, educated input and won’t be afraid to provide their opinions on the direction of your company. This will lead to higher-quality decisions and create a dynamic organization.

Be flexible. When you’re building something from the ground up it’s inevitable that you’ll make mistakes in the process. Being able to adapt to the unexpected will help you stay focused on what matters and the broader, more long-term goals. Don’t allow yourself to derail over the small things, and be prepared to react quickly to bumps in the road

All entrepreneurs need to prepare for every aspect of running a business, and this includes developing an ability to manage the company’s finances. Whether you are going to ask a lender for a loan or seek an investment from a venture capitalist, make sure to go in with a solid, well-researched business plan that shows the market opportunity.. Remember, angel investors hear pitches all day long and are really looking for a business idea that will stand the test of time and produce the largest ROI.

WIth that said, find a way to grab the investor’s attention. Be upfront about your business’s journey and your plans for its success.

Never fear failure. Instead, recognize that failure can teach you valuable lessons about your business as well as your career path. What works for one person may not work for you – don’t get discouraged. Try again until you get it right.

And my last piece of advice – go for it. There’s no need to spend years working on a business model. Just go and start. Do it. Test it. Good luck!

]]>8429Entering Venture Capitalism? What to Knowhttp://money.ca/you_and_your_money/2019/02/20/entering-venture-capitalism-what-to-know/
Wed, 20 Feb 2019 15:03:47 +0000http://money.ca/you_and_your_money/?p=8426One of the questions I often receive as a venture capitalist is, “How do I become a venture capitalist?” New graduates and startup veterans alike want to get into the industry, and, I admit, it can be enticing.

There are many ways to break into the venture capital world, but they can generally be broken down into two categories: serial entrepreneurship and investment banking. I define a venture capitalist as someone who distributes third-party funds into new, early-stage ventures. An angel investor is someone who invests in companies with their own capital.

If you want to be a venture capitalist or enter in the industry, my advice is to start by building your experience in the greater financial industry as soon as possible. Ask an established VC if you can shadow them and ask as many questions as you can.

You’ll also need strong analytical skills with the ability to research markets and have a mix of foresight and business savvy to pick winning investments. From my experience, success in this area also directly correlates with an ability to keep up with changing industry trends.

Finding entrepreneurs or young businesses at the earliest stages in the process is another critical skill. One way to find these potential investment opportunities is to attend meetups for emerging technologies and identify attendees offering the most potential.

Once you’ve discovered and pinpointed a potential business to invest in and have completed the necessary analysis to suggest it will succeed, the next step is figuring out finances. How much money does this business require? This isn’t the final stage of the process, but shaping out a basic set of terms is fairly easy — and highly important.

Working as a venture capital can be highly stressful, yet at the same time lucrative. Be prepared to clock in a lot of very long hours with most of that time spent listening to pitches by potential companies. It’s also, in my opinion, extremely rewarding to watch a start-up you invested in succeed.

]]>8426Why Connected North Deserves Our Supporthttp://money.ca/you_and_your_money/2019/02/20/why-connected-north-deserves-our-support/
Wed, 20 Feb 2019 14:46:17 +0000http://money.ca/you_and_your_money/?p=8422Connected North changes lives through technology. The non-profit organization uses high definition video to connect children in isolated northern communities. Technology can help bridge the gap between teacher and student, allowing those in remote areas to gain access to essential educational resources and learning opportunities.

Connected North works with content providers, funders, and community partners who help deliver immersive and interactive youth engagement and education to Indigenous students across the country.

Cisco Canada, the Toronto-headquartered tech company that launched Connected North, provides the video technology. Besides the basics of education, the goal is to help Indigenous students improve their language skills, as well as share histories and stories with other communities, and provide mental health support.

The program has been recognized by the International Society for Technology in Education, with Mali Bickley, on behalf of Connected North, awarded for outstanding contributions to video conferencing in education. Bickley has been a key member of Connected North as a Classroom Collaboration Specialist since September 2015. Bickley creates customized and authentic learning opportunities for Connected North students and teachers, including a mentoring session with Canadian WNBA player Kayla Alexander and students in Nunavut.

Participating Connected North schools include the Innuhaq School in Arctic Bay, Ontario, the Sk’aadgaa Naay Elementary School in Skidegate, BC, the Ghuch Ria Community School in Carcross, Yukon and the Deh Gah School in Fort Providence, NWT.

The Connected North network serves around 10,000 students across 42 schools in all three territories and five provinces. But many more northern schools are interested in getting involved. That’s where we can help.

Bryan Trottier, Canada’s most decorated Indigenous athlete, was the first former NHL player to sign up. Of Metis heritage, Trottier recognized the importance and potential for Connected North. And when he heard that we needed to attract teams, he called me. Now, Bryan and me go back a few years. We first met at the Road Hockey to Conquer Cancer event in 2011 and we share a passion for hockey. So I didn’t have to think twice when Bryan called asking for my participation.

Working with others on my team, we raised $16,700 for a cause that generated more than $300,000 for Connected North. Plans are already underway for another tournament in 2019. I’m impressed by the work done at Connected North and proud to support them.

]]>8422Is a Personal Loan Right for Youhttp://money.ca/you_and_your_money/2019/02/19/is-a-personal-loan-right-for-you/
Tue, 19 Feb 2019 03:19:33 +0000http://money.ca/you_and_your_money/?p=8419We all need a cash infusion from time to time, for our dreams or for unforeseen emergencies. Obtaining a cash loan can be done in several secure, safe, and sane ways. Often the easiest way is through friends and/or family. And, or course, most people have at least one credit card that they can use when there’s a need. But have you considered the advantages and the convenience of a personal loan? According to lending firm LoanStar, “In some quarters a personal loan is not considered conventional enough, but when done right is can be completely safe and uncomplicated.”

So just how exactly does a personal loan work? It’s not a credit card, which charges you variable interest and comes with a fluctuating payment schedule that can be very confusing and arbitrary. With a quick personal loan you can borrow a prearranged amount of cash with one fixed interest rate for the length of the loan, and your payment schedule is also predetermined. There’s no unpleasant surprises, like a ‘balloon’ payment at the end of the loan period. Monthly payments are agreed upon ahead of the actual loan, so you know exactly what you’re getting into and budget accordingly.

Another plus for personal loans is that they normally come with a much lower interest rate. It depends mainly on credit scores and credit worthiness. The normal APR on a retail credit card has zoomed to more than 17 percent; but for most personal loans the APR is still at about 4 percent — that is, if you’ve kept your credit rating good.

Please remember that when it comes to personal loans, there are only two types — unsecured and secured. Most personal loans are unsecured, which means you do not have to offer any collateral in order to secure the desired amount of capital. Naturally, this is the most popular type of personal loan — it requires less paperwork and less interference from outside agencies. A secured personal loan, on the other hand, requires some kind of collateral, like your car, in order to secure the loan amount. Most people find it distasteful to put up an asset, but it should be mentioned that a secured personal loan usually has a much lower interest rate than an unsecured personal loan. So keep that in mind when mulling over your options.

One of the most popular uses of unsecured personal loans is for debt consolidation. People who have become mired in a high interest rate credit card swamp of debt can find it nearly impossible to pay down the interest, let alone the debt itself, without some outside help. Exchanging a low interest personal loan debt for a vampire-like high interest credit card debt simply makes financial common sense. Once this is done it becomes possible to make a personal budget that is not subject to the whims and sudden changes of high interest credit card payment demands. It can really bring peace of mind.

If you decide that working with a personal loan company is right for you make sure you check their originations fees and any other service fees associated with your personal loan before signing on the dotted line. These fees are usually very modest, but it never hurts to have everything out in the open before committing yourself. It makes for a happier and more productive loan experience.

]]>8419Basic Tips To Help You Have A Perfect Lawnhttp://money.ca/you_and_your_money/2019/02/18/basic-tips-to-help-you-have-a-perfect-lawn/
Mon, 18 Feb 2019 21:11:20 +0000http://money.ca/you_and_your_money/?p=8417So many homeowners want to have a truly perfect lawn but do not actually know how to do this. Taking care of the lawn is something that is not as easy as you might think. It needs a lot of work. You need to be sure that you do all that is needed in order for the lawn to be perfect. This requires a lot of knowledge. The tips below, offered by Fix It Right Plumbing, will help you do exactly that.

Preventing Weeds From Showing Up

You have to stop the weeds from gaining roothold inside the lawn way before they start to germinate. This is pretty easy to do when you use a suitable herbicide. You want to buy a pre-emergent one that will control dreaded crabgrass, all while eliminating some specific weeds that are damaging for lawns. The idea of these herbicides is that they stop seeds from sprouting. Just be sure that you follow the package instructions in regards to protective equipment, safety precautions, application procedures and proper clothing.

Remove Broadleaf Weeds As Soon As They Sprout

When broadleaf weeds appear they are instantly obvious. They are bright yellow, like dandelions, have white-flowering clover and a big-leaf plantain. You want to treat this by applying granular weed control. When just some offenders are seen, as is often the case with most lawns at the beginning of the infestation, hand removal is possible.

As a helpful tip, wait until heavy morning dew appears if you want to apply the granular weed products. Granules require moisture in order to properly stick to the weed leaves. Dewy mornings give you exactly that.

Frequent High Mowing

When you mow the lawn short it all seems like a wonderful time saver. The problem is that this practice can actually damage the grass. Weeds also end up rooting faster. You want to keep the law just a little bit taller. This makes the grass healthier. Generally, the idea is to never cut off anything more than one-third of grass blade.

Sharp Mower Blades Are Mandatory

When the lawn mower has dull blades, grass will be torn. This results in ragged edge in the blade, which makes overall lawn appear grayish brown. You want to replace or at least sharpen lawn mower blades if wear signs appear. As an alternative, do this once if mowing season starts.

Lawn size and mowing frequency always dictate if you should replace or sharpen blades more often. You want to look at grass blade right after you mow. When it is frayed or shredded, you want to sharpen up the blades.

Water During Mornings

No matter what you might think, the very best time to water the lawn is always during the morning, early during the morning. This is because sun helps dry grass. If you water during the night or when it is dark, prolonged blade moisture appears. This can easily lead to lawn diseases. Water less but for a longer period of time. This is always better.

]]>8417Considering Different Types of Car Insurancehttp://money.ca/you_and_your_money/2019/02/18/considering-different-types-of-car-insurance/
Mon, 18 Feb 2019 15:13:01 +0000http://money.ca/you_and_your_money/?p=8413If you’re finding car insurance for yourself for the first time, or if it’s even just your first time trying to navigate the maze of different car insurance options, it can get pretty overwhelming. Legally required minimum levels of insurance vary by state, but then there are various types of car insurance beyond that, and finding the right ones for you and your car and lifestyle can be difficult and stressful.

It’s all about considering what you are most at risk for and contemplating how or if you would be able to handle hypothetical accidents without insurance. Think about what your personal insurance needs are, depending on your driving and life habits and your ability to financially deal with emergencies, and put together the perfect insurance policy for you. Here are the main categories of insurance you should understand.

Liability Insurance

Liability insurance refers to insurance policies that pay not for damages that you sustain but or damages that you cause. It kicks in when you are at fault or held liable for an accident, and it will directly pay back the other driver or drivers for their damages and injuries. Insurance policies will have a specific dollar amount that they are able to pay out in these situations.

This category of insurance comes in two varieties. There is liability insurance for property damage, whether it’s their vehicle or some other part of their property that you hit with your car. Then there is liability insurance for personal injury, which will kick in to pay for any medical expenses they incur because of your actions in the car accident.

Collision and Comprehensive

Unlike liability, collision and comprehensive insurance pay for damages sustained by your own vehicle. If not paid by another driver’s insurance, collision coverage can compensate you for harm to your car from a car accident or even from a collision with something else like a fence or a telephone pole.

Comprehensive coverage often comes bundled with collision insurance, and it can help you to ensure against unexpected damage to your car that isn’t caused by any actual collision or crash. It should help you to repair or even to replace your vehicle if it’s stolen or if your vehicle is damaged during a storm or randomly hit by a falling tree.

Uninsured/Underinsured Drivers

Uninsured or underinsured motorist insurance is for just what it sounds like. If another driver causes an accident with you, their liability insurance should cover your costs. But if they’re driving without proper insurance, it may be difficult or even impossible to be properly paid back. It’s also possible that they’ll have insurance, but that their policy is not able to cover the entire cost of the damages they’re responsible for. This insurance kicks in to cover your costs in such a case.

Personal Injury

Personal injury insurance coverage is a category of insurance that can make things simpler by paying for medical costs without regards to liability or fault in the actual accident. It will help to reimburse you for medical costs for you or your passengers, and it can also cover other costs that come as a result of the accident like child care or lost income.

Legal Requirements

Nearly every state in the United States requires liability insurance of some level for all drivers. Some states like Florida have a financial responsibility law that requires liability insurance for property damage and personal injury insurance for medical costs. Other states also require underinsured/uninsured driver insurance or other types.

]]>8413A Doctor’s Take On the Keto Diethttp://money.ca/you_and_your_money/2019/02/18/a-doctors-take-on-the-keto-diet/
Mon, 18 Feb 2019 12:13:45 +0000http://money.ca/you_and_your_money/?p=8411In the past three years, type 2 diabetes has grown 41% among young populations. While the disease is typically seen in those above the age of forty, more and more children are facing the consequences of obesity and poor nutrition. It’s a scary epidemic that demands a radical shift in the way we both advertise and consume food. Confronting the latter problem, a new diet has emerged that aims to control insulin levels, improve hormone levels, support fat loss, and encourage greater control over our own hunger signals. It is one of the oldest diets in terms of research, initially tested for epilepsy and gaining traction as a highly researched treatment for diabetes, insulin resistance, high blood pressure, cancer as well as autoimmune disorders such as multiple sclerosis and rheumatoid arthritis.The Ketogenic diet has become a popular lifestyle choice among health conscious and goal-oriented individuals. It consists of low-carb and high-fat foods that create a drastic shift in your metabolic state, leading to a condition known as Ketosis.

What Is Ketosis?

The process can get a bit complicated but put simply; Ketosis is a natural metabolic state. In this state, the body produces ketone bodies out of fat that are later used for energy. By limiting the body’s access to glucose, Ketosis allows you to be fueled by fat rather than carbs. For ‘The Keto Doctor’,Dr. John Limansky MD, Keto is a sustainable tool to combat growing health epidemics and to relearn what it means to feed our bodies.“The ketogenic diet has gained in popularity for the simple reason that it works.” He continues, “It is a pathway to eating real non-processed foods in the right ratio. This method will promote loss of fat not loss of weight, which can be water and muscle mass. There are no gimmicks with this way of eating, no fancy shakes nor crazy cleanses. It’s a way to optimize our cells by decreasing the constant influx of glucose and fructose found in many of the commonly eaten processed foods products.”

Adopting the Lifestyle

What separates Keto from the latest health craze on Instagram? Keto is a lifestyle focused on real whole foods. Unlike many fad diets out there, Keto does not set calorie restrictions. The options are endless and it will not leave you feeling lethargic, hungry (more like hangry), or restricted in the kinds of choices you have available.

Debunking the Myth

One of the greatest misconceptions about the keto diet is that it encourages people to eat copious amounts of butter, bacon, and fatty foods at every meal. How the heck can that be healthy, we ask ourselves. In reality, a ketogenic meal can be very similar to your favorite meals that you prepare regularly. In the initial phases of transitioning over, carbohydrates do need to be lowered to less than 25-gm per day. Although, the limit to carbohydrates will generally be liberalized as time goes on.

The following are some common staples in a ketogenic diet:

– Wild salmon

– Shrimp

– Oysters

– Lamb

– Grass fed beef

– Bacon

– Eggs

– Avocados

– Olive oil

– Butter

– Ghee

– Avocado oil

– Hard cheeses (parmesan, manchego, etc.)

– Broccoli

– Cauliflower

– Lettuce

– Cucumber

– Kale

– Squash

– Zucchini

-Bone broth

– Soups

Health Care Vs. ‘Sick Care’

As one of the foremost authorities on the Keto diet, Dr. John Limansky has set out to help individuals fulfill their greatest potential in optimal health. “My goal is to revolutionize health care by going back to the basic building blocks which constitute health,” he says. Viewing traditional medicine as ‘sick care’ he intends to practice proactive health care by helping people take simple yet crucial steps. His site, BiohackMD provides insight into the fundamentals of the body with informative videos, articles, and the latest research in health and nutrition. He and his team have also set out to boost human nutrition with the best in keto supplements. Working to augment the ketogenic diet, BiohackMD currently offers three natural keto products, Keto Matrix, Green Matrix, Whey Matrix, along with a Multi Collagen Matrix that is set to launch this coming March. Today, Dr. John Limansky supplements our knowledge and answers some of the most popular questions surrounding the diet.

What type of person is the “perfect” candidate for this diet and why?

There is no perfect candidate for this diet as it can apply to the majority of individuals. Whether their goals are weight loss, reversal of diabetes, improved muscle mass, reduction of seizure activity or improvement in depression, this diet can improve their symptoms. Some would say it is restrictive and may be difficult to follow for long periods of time. For those who are metabolically dysfunctional, such as those with diabetes or insulin resistance, a ketogenic diet can radically improve their metabolic function by reducing fasting glucose, fasting insulin and improving central visceral fat content (which is the most dangerous type of fat). In these individuals, it will be important to be more compliant with the diet and maintain a higher ratio of fat to protein to ensure they are in ketosis and suppressing insulin levels.

How long does the keto diet take for clients to begin seeing results? What results can be expected?

The transition to burning fat is around 2 weeks. During the initial period (1 month) most people will see an approximate 8-10 pound weight loss, mainly from water and glycogen stores being depleted. The ultimate goal of a ketogenic lifestyle is to lose fat, not necessarily weight, which can include muscle and water loss. If an individual is doing a water and electrolyte fast, they will lose around 1/2 pound of fat per day. So, that’s the reference point I like to use. As they continue with this type of eating, a couple key things happen. Fat loss occurs in a step like fashion, with weight loss then plateaus then more weight loss. Insulin is suppressed and glucose levels become normalized. Blood pressure tends to improve and many other symptoms also have been shown to improve, including headaches, joint pains, depression, anxiety and seizure activity. The ultimate goal of this lifestyle is a combination of weight loss but also improvement in metabolic function. Once the metabolism and hormone control is improved, weight loss occurs.

]]>8411Why Replacement Windows & Doors Can Help You Reduce Building and Maintenance Costhttp://money.ca/you_and_your_money/2019/02/18/why-replacement-windows-doors-can-help-you-reduce-building-and-maintenance-cost/
Mon, 18 Feb 2019 06:03:10 +0000http://money.ca/you_and_your_money/?p=8407What Is The Cost Of Replacement Windows? There are so many good financial benefits to building your new home with replacement windows, and it’s hard to fit it all in one place. Below we have listed out the best financial reasons to build your home with replacement windows.

Reduced Energy Bills

Canadian Choice Windows & Doors, unfortunately for us that own or rent homes, we pay to heat and cool them. Equally unfortunate is the fact that exterior windows and doors are the weakest links of the building envelope in terms of allowing the transfer of heat and cold. Building your home with replacement windows can reduce your heating and cooling costs by over twenty-five percent. With rising energy prices, the dollar savings can be even more significant. Wouldn’t it be nice to have a few extra dollars a month to use elsewhere? Think!

Return on Investment

What is the return on my investment for building my new home with or upgrading my windows and doors? This is a question that is frequently asked by our clients. Several sources indicate that the return on investment can range from eighty percent to ninety percent and many reports show that window replacement ranks in the top five for the highest return on investment projects.

Tax Incentives and Rebates

The federal government is reinstating a tax credit in 2009 for building your new home with or upgrading your windows and doors by using replacement windows that save energy up to star levels. This tax credit is for up to $1500. In addition to the federal tax credit, individuals building a house have an opportunity to earn up to $500 cash back for opting for Canadian Choice Windows & Doors, just so long as the work is performed by licensed, bonded, and insured companies.

Low Maintenance

Because replacement windows and doors are designed with low-maintenance in mind, the quality keeps Prompting people to ask What Is The Cost Of Replacement Windows & Doors. For instance, vinyl frames will never have to be painted, and fiberglass frames are inherently stable, so their factory paint stays on for a lifetime.

Furthermore, many of the hardware systems for windows and doors are made of durable, die-cast zinc or stainless steel material that go through thousands upon thousands of cycle-tests to ensure they will hold up in your home. Most window and doors manufacturers today offer a full lifetime warranty to the original homeowner that covers both labor and materials. Wouldn’t you like that kind of peace-of-mind and low-maintenance from your windows and doors?

Your home is your castle. That’s why you should choose Canadian Choice Windows & Doors. It’s the place you go for comfort. The benefits of replacement windows are way higher than the cost. They improve your home’s overall environment with benefits like natural light, noise reduction, improved views, and custom style.

New windows can offer UV protection for walls, fabrics, flooring, and furniture, which lengthens the life and quality of your home’s interior. They also require very little maintenance, allowing you more time for activities you enjoy. Consider the benefits of new windows for your home and how they can improve your quality of life.

When their traditional brick and mortar banks turn them down for personal loans, consumers with poor credit histories are turning to online lenders.

Big banks prefer to offer loans secured with assets, such as mortgages and automobile loans. But as traditional banks back away from unsecured lending, online lenders are flooding the marketplace with offers for unsecured personal loans and same day approval.

Online lenders are trying to entice potential customers with the promise of fast cash and the ability to cover unexpected expenses, debt repayment, home appliance replacement, family emergencies, car repairs, special events, and travel.

Asking the right questions to find a reliable lender

With this uptick in online lending, there is an increased potential for risk. Finding a reliable loan provider is imperative. No one wants to get stuck in an agreement with a lending institution which might lead to headaches and further financial issues down the road.

If they decide to go the route of an online personal loan, consumers must carefully research the options available on the marketplace. Finding an option with a responsible lender might take a bit of time, but it is the responsibility of consumers to protect themselves from signing an agreement with an online lender who could further damage their financial standing. Someone with bad credit may have limited choices, but it is important to find the best lending solution and avoid dodgy offers, like payday loans.

Carefully Review The Terms Of The Loan

When seeking online personal loans, consumers with bad credit should clearly understand the terms of the loan agreements they are signing. Not understanding the details of the loan could cost more money than expected over the long term.

8 Details to consider while researching a personal loan

1. Is It A Variable Rate Or A Fixed-Rate Personal Loan?

A fixed-rate personal loan is often a better choice. The customer always knows what they will be repaying with a fixed repayment schedule.

A variable rate rises and falls with the markets. It is a bit of a gamble for the average person.

Make sure the monthly loan payments are affordable. Taking on too high of a monthly installment sets consumers up for failure and potentially further damages their credit history.

Also, consumers must be honest and upfront about their actual income and monthly expenses. “Omissions” regarding hefty student loans or pricey monthly apartment rentals will skew what their salary can actually support. A reliable lending practice involves going over budgets with potential clients to determine what amounts they can handle each month.

4. What Will The Interest Rate Be?

Annual Percentage Rate (APR) is the total cost paid each year to borrow money, including interest rates and fees. A lower APR loan will cost less. For clients with bad credit ratings, APR’s and interest rates will be higher due to the greater risk to the lending institution. This is to be expected since someone with a poor financial history has a higher chance of defaulting on the personal loan.

If the rates are high, it won’t make sense for consumers seeking to consolidate and pay down interest credit cards with the loan. The loan would only be worthwhile at a rate well below existing debt to achieve any significant savings.

Also, many countries and states have usury laws which forbid excessively high rates of interest on loans. These laws are intended to protect the vulnerable from being taken advantage of by loan sharks and payday loan operations. Carefully investigate the rates offered to determine whether they fall under usury laws.

5. Are There Upfront Fees To Borrow Money?

Some lenders charge up to 5% in origination fees for processing the loan, while some charge none. These fees are also referred to as establishment fees or administrative costs.

6. What The Reputation Of The Online Lender?

Check consumer protection sites for complaints. Does the provider have positive reviews or ratings online from trusted sources, such as well-known magazines and newspapers with solid business evaluations, like Bloomberg, the Wall Street Journal and Fortune? Doing a simple search regarding the loan provider’s name and the word “usury” might be a good idea. If there are any red flags, consumers should turn to another source.

7. Is There A Penalty For Paying Off The Loan Early?

Some agreements charge a substantial fee for customers paying off their loans early. This penalty allows the lending institution to recoup some of the interest they didn’t make on the loan.

8. What Is The Loan Repayment Period?

Based on their application profile, consumers will be offered a period of repayment, usually ranging from 1 to 10 years. The longer the repayment period, the more interest will be paid. Therefore, the loan will cost more money.

Bad credit makes it difficult to secure traditional personal loans, but only reputable online loan companies are an option for the responsible consumer. Doing a bit of research and asking the right questions can save consumers money and headaches as they navigate the online personal loan space.